Friday, July 6, 2007

Experience as a Harbinger of Success:

Experience improves the odds your enterprise will succeed. Empirical studies abound about the percentages of business started each year and the dismal survival rates. What can be gleamed from the data, however is that experienced entrepreneurs have a significantly higher survival rate. This explains why franchise operation survival rates are atmospheric compared to non-franchised units. The franchise is providing the experience factor for you, at a very high cost. If you are opening a restaurant and your only experience in a restaurant is as a patron, then you need to bring into your management team a very experienced chef or sous chef. Experience provides the requisite skill set to understand menu pricing, food cost, labor cost, negotiating with vendors, design and marketing issues.